How analytics is driving the supply chain innovation in North America

Abstract

With big data analytics becoming more popular, academics have been wondering how they can adapt to the changes in competitive strategies that these solutions bring. This analysis, using the resource-based perspective, capabilities and also the most recent literature on big data analytics, examines the indirect connection between a big data analytics capability and two types of development capabilities, incremental and radical. The study extends existing research by proposing that BDACs enable companies to produce insight that could help strengthen dynamic capabilities that positively influence incremental innovation capabilities and radical. To test the hypothesis we proposed, we utilized survey data from 185 chief executives and managers operating in Italian companies. The outcomes of partial least squares structural equation modeling confirm our assumptions about the indirect effect that BDACs have on development capabilities. In particular, we find out that dynamic abilities completely mediate the outcome on both incremental and radical innovation capabilities. Furthermore, under conditions of higher environmentally friendly heterogeneity, the effect of BDACs on powerful features and in sequence is improved incremental innovation ability, while under conditions of higher eco-friendly dynamism, the effect of powerful abilities on incremental innovation abilities is increased.